Finance Minister Jim Flaherty’s February 16, 2010 Announcement

Finance Minister Jim Flaherty has today announced several rule changes for government-backed insured mortgages to come into effect on April 19, the proposed changes are as follows:

  • All borrowers must meet the qualifications for a five-year fixed mortgage regardless of what they may be applying for.
  • The amount that homeowners can withdraw on refinancing will be lowered from 95% to 90%, ensuring that more equity remains in the home.
  • A minimum 20% down payment will be required on properties purchased with the intent that they be rented out rather than owner-occupied.

The 5% down payment for residential owner occupied homes remains unchanged. The 20% down payment will be required only for property purchased for investment purposes.

Stephen Hall

Stephen Hall

Affiliated Real Estate Agent
CENTURY 21 Seller's Choice Inc.
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